Business expansion is any entrepreneur’s dream come true. When all your pieces are in place, and you’re poised to make THE move, it can be an exciting time for your company. But, with growth comes challenges – but that’s what makes it so rewarding in the end. All the same, you can check our Conklin Chevrolet newton here for unmissable deals on new and used vehicles.
While we celebrate our small wins, we’re pleased to point out that one way to grow your business is by acquiring another dealership. This can help your business enter a new market or add complementary products to your existing offerings. But before making any decisions, research the target company to ensure the acquisition makes sense for your business. In the meantime, here are a few recent dealership acquisitions you can check out:
Martin Management Group
Headquartered in Bowling Green, Kentucky, Martin Management Groups acquired Ross Nissan of El Monte in 2021 – in a deal facilitated by Performance Brokerage Services. Following the acquisition, Martin Management Group renamed the Nissan dealership El Monte Nissan.
The group was founded nearly four decades ago and has grown into various markets, with dealerships in Ohio, South Carolina, California, and Tennessee. As a result, it offers multiple franchises and has been ranked among the best dealership groups in the country. The firm has also earned recognition for its efforts to promote minority-owned enterprises. For instance, the Black Enterprise Magazine included Martin Management Group in its list of Top-100 Minority dealers in 2020.
The firm’s portfolio includes multiple vehicle brands from automakers such as Subaru, Dodge, Volkswagen, Honda, and Ford. Given Nissan’s robust product lineup and attempt to increase production over the coming months, the acquisition allowed Martin Management Group to offer its customers an even more comprehensive array of vehicles and meet growing demand.
Asbury Automotive Group
Asbury took advantage of the merger and acquisition boom to acquire Park Place Dealerships. The all-cash deal worth about $735 million means Park Place’s portfolio of dealerships across the United States will now form part of Asbury’s operations.
The move is in line with Asbury’s goal to have a coast-to-coast presence and cements it as one of the largest dealership groups in the country. Headquartered in Duluth, Georgia, Asbury Automotive Group operates over 85 dealerships, representing over 30 brands in 15 states.
The company’s recent acquisition of Park Place Dealerships will see it take control of locations in Texas, Oklahoma, Colorado, and New York. With this move, Asbury now controls dealerships comprising Lexus, Volvo, Land Rover, and Mercedes-Benz – including 12 flagship franchises located in Dallas.
The addition of these high-performing dealerships is expected to boost the firm’s earnings. And as Asbury looks to scale up its operations, the investment will allow the firm to revamp sales and marketing initiatives while enhancing its customer experience offerings.
AutoNation
AutoNation is one of the largest automotive retailers in the United States, headquartered in Fort Lauderdale, Florida. The firm continues to grow through acquisitions, and its latest move was to acquire a controlling stake in Priority 1 Automotive (a family-owned dealership). The purchase added nine outlets in Maryland to AutoNation’s portfolio.
The acquisition is part of AutoNation’s goal to increase its footprint across the nation. And with this latest move, the company now has hundreds of locations across the country.
Penske Automotive Group
Penske Automotive Group is a premier commercial truck seller and provides transportation services. Recently, the firm added two more dealerships to its portfolio. The company acquired a Mercedes-Benz and Smart dealership in Gainesville, Florida, and a BMW dealership in Tallahassee, Florida.
Other additions to the firm’s long list of dealerships were Terry Lee Hyundai (a highly acclaimed dealership in 2020) and Genesis of Noblesville. These acquisitions enhanced Penske’s presence in Indiana. As part of the Fortune 500, Penske is a household name in the automotive sector. In fact, Fortune Magazine included the company in its list of Most Admired Companies in 2020.
Penske’s acquisitions are part of a long-term strategy to expand its geographical reach and product offerings. Hence, the company is well on its way to achieving those goals.
What Can We Learn from Recent Dealership Acquisitions?
In the past few years, there have been several high-profile mergers and acquisitions in the auto dealership industry. Some of the biggest names in the business have been involved in these deals, and they provide an exciting look at the industry’s current state. Perhaps, this is a vote of confidence in the sector’s future.
Plus, they suggest a lot of consolidation is happening in the auto dealership industry. The big players are getting bigger and using their size to gain an edge over their competition. This consolidation will likely continue in the coming years, and it will be interesting to see how it affects the industry.
Ultimately, acquisitions allow automotive businesses to adapt to their present reality. They also help enterprises diversify their product offerings and enter new markets. So, if you’re considering acquiring a dealership, these recent deals can give you an idea of what’s possible.